The ways of those who, traditionally, have the monopoly of money, banks, and governments are beginning to speak out against the growing popularity enjoyed by the Bitcoin. The negative statements recent of the big banks and the government repression of the digital currency and ICO observed a little everywhere in the world can be considered as a counter-offensive in the face of the Bitcoin. In fact, the Bitcoin has always had the potential to become a currency free and out of control of the large banks and governments.
The concerns of traditional institutions
Therefore, we should not be surprised when the banks, such as JP Morgan, express their antipathy towards the Bitcoin. All the more that if the adoption of Bitcoin becomes massive, it will mean the end of the big banks and traditional financial institutions. The same goes for governments. A currency’s decentralized removes from the hands of the government a large part of its power. While a government seeks to keep a total control on the currency inside its borders. Taxes and regulations and money are powerful tools used by governments to limit the potential of Bitcoin.
With a digital currency that works properly, the major governments will lose the benefits obtained by the printing of the tickets, and they will lose, at the same time, the ability to control the national economy. For the banking sector, lose the ability to manage the money that flows between the central banks and the market economy will mark the end of the monetary economy traditional.
Are these fears founded ?
In the end, these fears may seem far too strong. Indeed, although the Bitcoin begins to compete with the monetary economy traditional, there will only be a monetary system additional and never will be a replacement system. According to Apostolos Pittas, assistant professor of economics at the university LIU Post : “The digital currency, like Bitcoin, helps to soften the process of bank loan. In 2007-2008, during the financial crisis, credit dried up when banks have ceased to lend. With a digital currency such as Bitcoin, loans are decentralized and can continue normally. This allows the money to reach those in need. “